GoHealth lays off 800 workers as online health insurance seller cuts back – Crain's Chicago Business

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GoHealth, an online health insurance seller, is eliminating 800 jobs, becoming the latest Chicago tech company to announce a mass layoff. 
“We are taking the difficult but necessary step of significantly reducing our agent workforce and support teams,” CEO Vijay Kotte said yesterday in a message posted by the company.
About 100 of the laid-off employees are in Chicago, the company said. Overall, the cutbacks total about 15% of the 5,500 employees GoHealth reported at the end of last year.
GoHealth’s layoffs are even larger than the 500 jobs that Groupon said it’s cutting this quarter.
Layoffs are picking up speed in tech and other industries, from startups to publicly traded companies, caused by both the slide in stock prices as well as a slowing economy.
Companies such as Groupon and GoHealth are having their own specific challenges. Groupon’s online deal business was wrestling with finding growth and profitability already when COVID-19 hit, crippling its business. The company’s revenue is down 71% in the most recent quarter from the same period in 2019. It did a mass layoff two years ago.
GoHealth also has encountered problems with its business. The company, which focuses heavily on Medicare-related plans, recently replaced its founders, Clint Jones and Brandon Cruz, as top executives as its stock slipped under $1 per share. The company went public in July 2020 at $21 per share and almost immediately began falling.
In the first quarter, GoHealth’s revenue declined 42% to $153.3 million, and the company lost $34.8 million, compared with a profit of $14.6 million in the same period a year earlier.
GoHealth’s CEO said the layoffs are the result of “an exhaustive analysis of our business needs and extensive consideration that we agreed this was the path forward to secure our long-term future and enable GoHealth to achieve its full potential.”
 

 
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